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Foreign Investment in Turkey Increases by 58%

In the first eight months of 2025, foreign direct investment in Turkey reached $10.6 billion. According to the International Association of Investors (YASED), this is a 58% increase compared to the same period in 2024.

In August, the country attracted $1.8 billion in direct investment. Of this, $1.5 billion was equity, $137 million was debt, and $202 million was foreign real estate acquisitions. Including the liquidation of $90 million in investments, the total for the month reached $1.8 billion. Since 2003, the cumulative volume of foreign direct investment in Turkey has exceeded $284 billion.

The information and communications sector was the key sector in August, receiving $1 billion, or 69% of all investment capital. Wholesale and retail trade attracted 10%. Over the first eight months, the leading sectors in terms of investment volume were wholesale and retail trade ($2.5 billion), information and communications ($1.2 billion), and food production ($1.2 billion).

The majority of international investment in August came from EU countries, which accounted for 91% of all investments. Among individual countries, Luxembourg led with a 71% share, followed by the Netherlands (14%), Switzerland, Azerbaijan, and Ireland, with 2% each. At the end of the first eight months, the largest investors were the Netherlands ($2.5 billion), Kazakhstan ($1.1 billion), and Luxembourg ($1.1 billion).

According to fDi Markets, for the first half of the year, the volume of announced global greenfield projects exceeded $700 billion—the third time since 2003 that such a result has been recorded. Among the 7,400 new projects, 62 megaprojects valued at over $1 billion accounted for a third of the total capital. The most active investments were in data centers and semiconductors, with approximately $300 billion in 24 major deals.

Amid growing energy demand driven by the development of AI and cloud infrastructure, investment in renewable energy declined: from $147 billion in the first half of 2024 to $83 billion in the first half of 2025.

It was also announced that Turkcell and Google Cloud have entered into a strategic partnership to create Turkey's first scalable cloud region. Investment in the project is estimated at $1 billion, planned to be spent by 2032. The new region will include at least three independent zones, with data centers scheduled to launch in 2028–2029.

According to Google Cloud CEO Thomas Kurian, the future cloud region will be part of the company's global infrastructure, which spans 42 regions worldwide. It will provide modern solutions in data storage, cybersecurity, analytics, and AI-powered services. Turkcell, in turn, intends to double the capacity of its data centers and increase cloud revenue sixfold. All data will be stored domestically, fully compliant with Turkish legislation.

The project is considered a significant step toward strengthening Turkey's digital economy and technological development, and will also enhance its role as a key technology hub between Europe and Asia.



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